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Short answer problems about aggregate demand, disposable income, real GDP.

The US government is increasing its spending and cutting taxes. The Federal Reserve has reduced interest rates. The Obama administration hopes that the economy will begin to grow again without inflation.

Elucidate the position of the US economy over the next couple of years utilizing aggregate demand and supply curves if these expectations are to be realized.

(Hint: Look at, among other things, budget deficits, bank credit to the private sector, prices paid for imports, and the exchange rate and food production and food availability)

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M918292

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